An analysis of more than 60,000 companies across the United States found that downtown Silicon Valley is the top city for small businesses; San Francisco in second place.
Newcomers include Colorado Springs; Greater Bridgeport, Connecticut; Salt Lake City; Minneapolis; Port St. Lucie, Florida; and Phoenix.
Downtown San Jose, California.
San Jose, California, is the top city for small businesses, according to the Biz2Credit 2024 Top Small Business Cities Studya financial analysis that examines annual income, credit score, business ageand other financial data provided by companies that requested financing during 2023.
San Jose is the third largest city in California and the 12th largest city in the US. The city is considered the birthplace of Silicon Valley and has a long history of innovation, and this mentality fosters an urban center of learning and creativity, along with fantastic weather. . It is home to approximately 66,000 companies employing a total of 439,000 workers in sectors ranging from advanced manufacturing to healthcare and software, according to SJEeconomy.com. More than 2,500 high-tech companies are located in San Jose and benefit from easy access to the Bay Area and a talent pool filled with residents with degrees in science, engineering, technology and mathematics.
- 50% of San José residents have a college degree or higher, making San José one of the most educated communities in the country.
- 1 in 3 San José residents has a bachelor’s degree or higher.
- 1 in 5 have degrees in STEM (Science, Technology, Engineering and Mathematics) fields.
- Number one city nationwide for foreign-born talent.
Naturally, the city is home to tech giants including Adobe, Cisco, eBay, PayPal, Verifone, and Western Digital, among others. These corporations help build an ecosystem that allows small businesses to serve them and their employees. The success of these corporations boosts local real estate and small businesses, including restaurants, hotels, retail stores, and service businesses.
Further, San José Economic Development Office offers a wide range of business assistance programs that create a foundation for entrepreneurs to develop new ideas and foster economic opportunities. The Office of Economic Development provides permitting assistance, site selection services, retail grants, collaboration with businesses, government, educational and community organizations to facilitate local employment opportunities. Job2future provides a range of services including one-on-one training, on-the-job training and training partnership opportunities.
Small businesses in San Jose had high average annual revenue ($1,008,279) and a strong average credit score (672), according to data collected by Biz2Credit.
Two other West Coast tech hubs, San Francisco and Seattle, make the top five, along with two newcomers: Colorado Springs, CO, and Greater Bridgeport, CT.
The skyline of downtown Colorado Springs, Colorado.
He Colorado Springs Economy thrives in military, defense, aerospace, software/IT and tourism. It is home to the US Olympic Training Center, the Air Force Academy, and several military bases. The city also has a highly educated, diverse and industrial workforce.
Greater Bridgeport MSA includes Bridgeport, Norwalk and Stamford, CT. Bridgeport has an asset SME Department that supports small, minority- and women-owned businesses by addressing their unique challenges through customized resources and initiatives. The Stamford business community is a tight-knit ecosystem that attracts a highly educated and talented workforce to the employment opportunities offered by nearby Stamford. diverse mix of industries, finance and real estate, technology, management and consulting, digital media and healthcare make up the majority. Stamford, Connecticut’s second largest city, has experienced a construction boom in apartment buildings and mixed-use spaces in recent years. The city has a rapidly growing tech startup community, a strong healthcare system, top-notch schools, an unemployment rate well below the federal and state level, and residential options for all ages and income levels.
Key Findings from the Biz2Credit 2024 Best Small Business Cities Study:
- He leading industries Among the main cities are Accommodation and Food Services, Other Services (except Public Administration) and Construction.
- Average annual income increase by 10.4% to $618,000, compared to $560,000 in the 2023 ranking.
- Average expenses also increased by 13.8% to $489,000, from $430,000, resulting in 1.1% decrease in average incomewhich fell from $130,000 in 2023 to $129,000 in the 2024 report.
- Average credit scores increased by 11 points from 641 to 652.
- Increase in the average age of companies at 12 months, at 69 months, at 57 months.
- Eight cities are new to the list this year – including two in the top five – were: Colorado Springs, CO (3); Bridgeport, Conn. (5); Salt Lake City, Utah (11); Oxnard, California (13); Minneapolis, Minnesota (19); Port St. Lucie, Florida (20); Hartford, Conn. (23); and Phoenix, Arizona (25).
- Eight cities left the 2023 list: Milwaukee, Wisconsin; Kansas City, Missouri; San Antonio, Texas; Austin, Texas; Tampa, FL; Orlando, Florida; The Vegas, Nevada; and Miami, Florida.
Five cities rose in the Biz2Credit rankings compared to last year, including San José (1); Seattle (4); Portland (7); Providence, Rhode Island (9); and Baltimore(10). At No. 22, Nashville remained unchanged.
Meanwhile, 11 cities fell in the annual rankings: No. 2, San Francisco (previously No. 1); No. 6. San Diego (previously No. 3); No. 8 New York (previously No. 4); No. 12 Boston (previously No. 5); No. 14 Pittsburgh (previously No. 10); No. 15 Denver (previously No. 11); No. 16 Washington, DC (formerly No. 12); No. 17 Los Angeles (previously No. 6); No. 18 Sacramento (formerly No. 2); No. 21 Philadelphia (previously No. 19); and No. 24 Riverside, CA (formerly No. 13).
The 25 best cities for small businesses for 2024 (2023 rankings in parentheses) are:
- San Jose, California (7)
- San Francisco, California (1)
- Colorado Springs, CO (unrated)
- Seattle, WA (9)
- Greater Bridgeport, CT (unrated)
- San Diego, California (3)
- Portland, Oregon (8)
- New York (4)
- Providence, Rhode Island (20)
- Baltimore, Maryland (14)
- Salt Lake City, UT (unrated)
- Boston, MA (5)
- Oxnard, CA (unrated)
- Pittsburgh, Pennsylvania (10)
- Denver, CO (11)
- Washington, D.C. (12)
- Los Angeles, California (6)
- Sacramento, CA (2)
- Minneapolis, MN (unrated)
- Port St. Lucie, FL (unrated)
- Philadelphia, Pennsylvania (19)
- Nashville, Tennessee (22)
- Hartford, CT (unrated)
- Riverside, CA (13)
- Phoenix, AZ (unrated)
California is home to 7 cities on the list this year. Florida is represented only by Port St. Lucie at No. 20, and no Texas cities appear on the list.
Small businesses saw their average annual revenue increase by 10.4%. However, its expenses increased by 13.8%, a reflection of the impact of inflation on its results.